Ethereum (ETH) is currently consolidating within a tight range following its recent sell-off, demonstrating its resilience by holding above key support zones. However, the price remains firmly capped by a descending trendline and structural resistance around the $3,400 level. As buyers defend the vital low of $2,905, the orient yourself remains sideways until ETH can reach a decisive close above descending resistance to initiate the next major rally.
ETH tries to stabilize after the sell-off
According to a daily update by CyrilXBT, Ethereum is attempting to form a base following its recent sell-off, but the price remains capped below the 50-day EMA around $3,281. This level continues to act as a key obstacle, preventing ETH from confirming a stronger level. recovery for now.
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At the time of the update, ETH was trading near $3,131. On the other hand, initial support lies around $3,050, while a broader demand zone between $2,750 and $2,900 remains the most important area where buyers should intervene if selling pressure returns. On the upside, resistance is concentrated between $3,280 and $3,300, closely aligning with the 50-day EMA, representing a clear “proof” level.
Looking ahead, a clean break and sustained hold above $3,300 could open the door for a return towards the $3,500 zone and beyond. However, the inability to recover this resistance This would likely lead to unstable price action, with a possible retest of the $3,000 level and even a revisit to the $2,800 area.
Ethereum is trading below descending trendline resistance
Kamile Uray, crypto analyst revealed that ETH is currently confined, moving persistently below a blue descending trendline. This trendline acts as a significant diagonal resistance barrier, limiting the extent of ETH. bullish rebounds and maintains short-term downward pressure.
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Despite this aerial resistance, the analyst identified a critical problem support structure. Uray noted that the possibility of a continuation of the upward movement remains valid as long as the price remains above the ascending black trendline and above the established low at $2,905. This confluence of supports is crucial to maintaining the market’s current bullish bias.
If the blue descending trendline resistance is crossed decisively, the subsequent rally should target a series of higher resistance levels: $3,661, then $3,878 and finally $4,292. Kamile Uray summarized the breakout conditions, stating that the descending trendline will be approximately broken if ETH manages to achieve a daily close above the $3,400 level. Meanwhile, the key condition to expect continued upward movement is a close above $3,400 combined with the price successfully avoiding a close below the critical low of $2,905.
Featured image from Getty Images, chart from Tradingview.com
